No longer do we live in a world of scarcity. We live in a world of abundance.
This weeks reading by Anderson made me realize how the internet has opened a huge window of options for consumers. Growing up in a small town with limited clothing stores and one tiny music store I have experienced the concept of scarcity first hand. But today with constant access to the World Wide Web I am provided with an abundance of options and am no longer forced to shape my style and tastes around what limited items are included within these stores.
Anderson describes how the internet has created an entirely new economic model based on three main rules; make everything available, provide items at a lower cost and help consumers find what they are after. For the purpose of this blog I am going to discuss how the clothing site ASOS has followed these rules to achieve worldwide economic success.
Rule number one; Make everything available.
The internet has abolished many of the challenges faced by offline stores including the limitations of storage space and restriction of 9-5 opening hours. Due to the removal of physical space and transition into the virtual ASOS can afford to offer a catalog of over 50,000 ‘hit AND miss’ items to its customers.
The ASOS warehouse; an unbelievable 161, 544 square meters of storage space.
Rule Number Two; Cut the price in half. Now lower it. The costs associated with the sale of products online are much lower than what are incurred offline. Therefore ASOS has the advantage of not only offering an enormous range of items 24/7 but also are able to offer these at a lower cost.
Rule Number Three; Help me find it.
This is the tricky part, as without the reassurance of a retail assistant convincing you that the horrible purple mini skirt would match perfectly with a pink spotted t-shirt it is often hard to make a purchase decision. ASOS and many other clothing stores have recognized that during the decision making process you need to adopt both the short and long tail approach and by relying on consumer behavior data they are able to suggest additional products which enables them to gently encourage consumers to explore the unknown outside of tiny offline retail outlets.

